$$\begin{array} { | l | l | }
\hline \begin{array} { l }
\text { Disposable } \
\text { income } \
\text { (thousands of } \
\text { dollars) }
\end{array} & \begin{array} { l }
\text { Consumption } \
\text { exp enditure } \
\text { (thousands of dollars) }
\end{array} \
\hline 200 & 225 \
\hline 300 & 300 \
\hline 400 & 375 \
\hline 500 & 450 \
\hline
\end{array}$$
-According to the data in the above table, what is the marginal propensity to consume?
A) 1.
B) 100.
C) 75.
D) 0.75.

Question

$$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Disposable } \
\text { income } \
\text { (thousands of } \
\text { dollars) }
\end{array} & \begin{array} { l } 
\text { Consumption } \
\text { exp enditure } \
\text { (thousands of dollars) }
\end{array} \
\hline 200 & 225 \
\hline 300 & 300 \
\hline 400 & 375 \
\hline 500 & 450 \
\hline
\end{array}$$
-According to the data in the above table, what is the marginal propensity to consume?
A) 1.
B) 100.
C) 75.
D) 0.75.

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in disposable income. Here, for every $1000 increase in income, consumption increases by $750, so MPC = 750/1000 = 0.75.

-According to the Data in the Above Table, What Is